Good, bad, good method - how to deliver bad news with good

When I was working in one of my previous jobs I used to get told bad news using what I called at the time "The Sandwich Method." Basically it means you get told good news, then the bad, and then some good. For example:

-Hey the bosses really liked the work you did on that site
-Cool
-Yeah it was brilliant. I'm afraid they want you to work the weekend though
-Oh right
-Oh and there might be a night out organised next week

Well today I used it myself with a client - they asked me to reduce the cost of a bit of work I did - so I said "well I was going to reduce this other one a little, I can't reduce the one you said, and I'll have that other work you need before the day is out."

Soften the blow, keep everyone happy!